Vol. 144, No. 11 — May 26, 2010

Registration

SOR/2010-101 May 11, 2010

CANADIAN FORCES SUPERANNUATION ACT FINANCIAL ADMINISTRATION ACT

Regulations Amending the Canadian Forces Superannuation Regulations and the Reserve Force Pension Plan Regulations

The Treasury Board, on the recommendation of the Minister of National Defence, hereby makes the annexed Regulations Amending the Canadian Forces Superannuation Regulations and the Reserve Force Pension Plan Regulations pursuant to

(a) subsection 3.1(1) (see footnote a) and sections 50 (see footnote b) and 59.1 (see footnote c) of the Canadian Forces Superannuation Act (see footnote d); and

(b) paragraph 7(2)(b) of the Financial Administration Act (see footnote e).

REGULATIONS AMENDING THE CANADIAN FORCES SUPERANNUATION REGULATIONS AND THE RESERVE FORCE PENSION PLAN REGULATIONS

CANADIAN FORCES SUPERANNUATION REGULATIONS

1. (1) Paragraph 12.2(1)(d) of the Canadian Forces Superannuation Regulations (see footnote 1) is replaced by the following:

(d) in respect of which the contributor has not lost the right to make an election under subsection 14(1) of the Reserve Force Pension Plan Regulations.

(2) Subsection 12.2(2) of the Regulations is replaced by the following:

(2) In respect of a member, or former member, of the reserve force who becomes a contributor on or after March 1, 2007, clauses 6(b)(ii)(G) and (H) of the Act are adapted as follows:

(G) any period of reserve force service referred to in subsection 12.2(1) of the Canadian Forces Superannuation Regulations, if — during the period beginning on the day on which they become or, if the contributor ceased to contribute to the Canadian Forces Pension Fund before the end of the last period in which the contributor was entitled to make the election, again become a contributor and ending the later of one year after the date of the written notice advising the contributor that they have become entitled to make it, and March 1, 2011 — the contributor elects to pay for that service,

(3) Section 12.2 of the Regulations is amended by adding the following after subsection (3):

(4) The contributor referred to in subsection (2) may not make an election for reserve force service under clause 6(b)(ii)(K) of the Act.

2. Section 12.3 of the Regulations is repealed.

3. Section 14.4 of the Regulations is replaced by the following:

14.4 The contributor shall make the top-up election no later than the later of one year after the date of the written notice advising the contributor that they have become entitled to make it and March 1, 2011.

RESERVE FORCE PENSION PLAN REGULATIONS

4. Paragraph 6(2)(b) of the Reserve Force Pension Plan Regulations (see footnote 2) is replaced by the following:

(b) any of the participant’s earnings in a calendar year after the calendar year in which the participant reaches 71 years of age.

5. Section 13 of the Regulations is replaced by the following:

Election period ends

13. The participant shall make the past earnings election no later than the later of one year after the date of the written notice advising the participant that they have become entitled to make the election and March 1, 2011.

COMING INTO FORCE

6. These Regulations are deemed to have come into force on March 1, 2007.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

These regulatory amendments extend two time limits set under the regulations.

The parallel amendments to the Canadian Forces Superannuation Regulations and the Reserve Force Pension Plan Regulations extend the March 1, 2010 deadline for elections to have prior Reserve Force service recognized for pension purposes to March 1, 2011. This deadline extension represents an additional grace period and does not alter the standard rule that allows a member to elect up to one year after the date of the written notice to the member that they are eligible to make an election. This amendment will be deemed to have come into force on March 1, 2007.

There is also an amendment to the Reserve Force Pension Plan Regulations that brings the age-related maximum contributory period set out in those regulations in line with changes to the Income Tax Act (ITA) contained in the Budget Implementation Act, 2007. The ITA changes have increased the maximum age for entitlement to earn additional pension benefits to age 71 from age 69, beginning in 2007. The Reserve Force Pension Plan Regulations are being amended in order to allow Reserve Force Pension Plan participants to accrue pensionable credits to the end of the calendar year in which a member reaches age 71.

Alternatives

The pension arrangements for members of the Canadian Forces are set out in the Canadian Forces Superannuation Act and the Regulations made under the Act, and therefore there is no alternative to the regulatory route.

Benefits and costs

There are no additional costs associated with these amendments.

Consultation

These changes have been discussed with the Minister’s Pension Advisory Committee. During the development of these amending Regulations, consultations were undertaken with officials of the Treasury Board Secretariat, the Department of Justice and the Office of the Superintendent of Financial Institutions.

Compliance and enforcement

The normal legislative, regulatory and administrative compliance structures will apply, including internal audits, the usual reports to Parliament, and responses to inquiries received from Members of Parliament, affected plan members and their representatives.

Contact

Ms. Lynne McKenna-Fleming
Acting Director
General Compensation and Benefits
National Defence Headquarters
Ottawa, Ontario
K1A 0K2
Telephone: 613-995-1930

Footnote a
S.C. 2003, c. 26, s. 2

Footnote b
S.C. 2003, s. 26, s. 23

Footnote c
S.C. 2003, c. 26, ss. 41(1)

Footnote d
R.S., c. C-17

Footnote e
R.S., c. F-11

Footnote 1
C.R.C., c. 396

Footnote 2
SOR/2007-32

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